Australian metals company, Koch Metals Limited has strengthened its portfolio of high quality iron ore projects after entering into a non-binding Heads of Agreement with ASX-listed Tulla Resources (ASX:TUL) to purchase up to 400Mt of JORC compliant iron ore from Tulla’s Norseman Project in Western Australia.
The Norseman Project is located approximately 725km east of Perth, 200km south of Kalgoorlie, and 200km north of the major port city of Esperance, at the southern end of the highly productive Norseman-Wiluna greenstone belt.
The Project has a combined exploration target of approx. 360Mt - 938Mt of magnetite at a grade of 35%, and 38-98Mt of hematite-goethite with a grade of 25%, and strong potential for further high-grade deposits.
Under the agreement, Koch will be providing A$42m over a three year period to fund exploration at Norseman with the intention to bring the project to production. Koch will fund 65% of the project costs above this amount, with Tulla funding the remaining 35%. Koch will purchase up to 400Mt of iron ore with an initial commitment to purchase 200Mt, additional purchases in tranches of 50Mt up to 400Mt, and with an option to purchase the LOM iron ore.
The agreement and funding are conditional on definitive agreements being finalised, Koch raising capital and being admitted to the London Stock Exchange, due diligence in relation to the iron ore assets and all necessary approvals being obtained.
Koch’s portfolio also consists of a 100% interest in the Constance Range Project located in North-West Queensland, 170km north of the town Camooweal and approximately 280km from the Port of Karumba.
Constance Range has a 2004 JORC Inferred Resource of more than 242Mt of iron ore including 11Mt “DSO”, with the option for a Phase 1 DSO project. The Project’s combined total exploration target exceeds 700Mt at grades between 48% and 60% with the majority over 52% Fe in situ.
Potential for further high-grade deposits exist at both Norseman and Constance Range, and the company has planned exploration drilling to commence in 2022.
The Company is headed up by an experienced board and management team, with CEO David McKenzie having held senior management positions at companies including Mt Isa Mines, BHPB (ASX:BHP) Cannington, Placer Dome, and Rio Tinto (ASX:RIO) West Angelas.
Koch is launching a Pre-IPO capital raise to fund exploration and development at both Constance Range and Norseman, ahead of a listing on the London Stock Exchange expected in Q2 2022.
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